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Business Development

Essay by   •  March 24, 2016  •  Coursework  •  1,635 Words (7 Pages)  •  1,362 Views

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The effective business development and profitability and the business success has an essence relationship. If the enterprise has effective business development, they will likely to be success. To testify this argument this essay will use 759 restaurants as example, to show how the success business development to help the 759 company become a lager local company with 5 years.

First of all identify what are business development and the impact. According to Hassanien, Dale and Clarke(2010, p.20) business development as a process that the company can improvement through enhancing current products, developing new product, entering new market and joint new resource. Why the business development is important for an enterprise? According to Mind Tools (2015) an effective business development can “increase profitability, gain more market share, increase approval ratings, or boost customer satisfaction and complete a project under budget.” It also can achieve the company vision and mission. If the enterprise can do it, they can be a success company. “Many business start-ups fail each year because of the lack of thorough research and planning, poor management practices and principles, and lack of financial resources.” Susan C (2010). It can see that why the effective business development is very important for a company especially for the new enterprise.

An example about error enterprise development led to company closures is Webvan Group Ins, “for a time in 1999, Webvan appeared to be a darling of the Internet sector.” (Evans, 2001) According to Tech2ipo(2015), the company reached the highest market value was $ 7.6 billion, for a total loss of more than 1.2 billion US dollars in two years’ time, in July 2001, Webvan closed down, and more than 2,000 employees lost their jobs. Kathman, the securities analysts at Morningstar Inc said that they spent too much for the infrastructure money, even though it is their business model in a ring, but planned eventually brought advantage worst results. The company expanded rapidly, but the markets demand cannot keep up large scale has become a burden.

Apply to the 759 company, why they can success within 5 years. 759 company was originally a factory before 2010, In the same year in July, company decided to broaden Hong Kong's retail business, its development strategy is self-imported goods, reducing the cost of goods, then give the most favorable price to customers, this strategy has successfully attracted a large number of local residents patronage. (CECIH, 2015) Up to March 2015, 759 Store has 247 retail outlets, as well as five different types of restaurants in Hong Kong and hire more than 3000 employees. From this, a successful business development is a key factor affecting whether a company can be successful.

“Profitability is critical to a company's long-term survivability. …… To be successful and remain in business, both profitability and growth are important and necessary for a company to survive and remain attractive to investors and analysts.” (Maverick, 2015)

“The success of any hospitality business depends mainly on its development plans.” (Hassanien, Dale and Clarke, 2010) It can see that a development plans are reality to the success. The success not only achieve vision and mission value, and the same time it will affect the profitability, the market share and business growth goals.

759 company is very success company in Hong Kong. The first shop of 759 STORE was open in 2010, as of March 2015, the shop number of 759 STORE had reached 247. (759 Store, 2015) About the scope of hospitality business development, apply to the six categories of new products (Booz, Allen and Hamiton, 1982) The first one new to the world products, 759 STORE continued to introduce the foreign hot item rather Hong Kong was lack of promotion, it not only avoid competition with local enterprises, and also bring the new and hot product to Hong Kong customer. 759 Tea Restaurant also benefit from this, the restaurant many ingredients are optional foreign ingredients, such as Brazil, New Zealand, and Korea. The company business strategy is hope can provide a reasonable price with quality tea restaurant food to the guests.

Second new product lines, the business tend to be more diversified, 759 company initially based snack shop in the main, now it extend to the supermarket, home suppliers market, beauty shop, restaurant, cafe shop as well as bakery. In the 759 wonton noodle shop, also has a new product line, it not only has general wonton noodles, as well as other wonton noodle shop did not available which is Pakistani curry, the company hope to give the guests an another surprise choice.

Third are additions to existing product lines. 759 Tea Restaurant understand that milk tea is very important in the Hong Kong people life. Their milk tea “In order to meet the tastes nearby neighborhood and 759 fans of different ages, tea restaurant with three different kinds of tea, with its wealth of experience, a specific temperature and brewing time, the deployment of the smooth taste of tea, aromatic flavor, but not too astringent flavor.” (759 Store, 2015)

Also repositioning products, the future of 759 company will focus on the development of "micro-department store", locations with nearly 10,000 sq. as target. (AASTOCKS.com Limited, 2015) In the 759 restaurant, although the restaurant is positioned as a tea restaurant, but the company hopes to build "non-general" tea restaurant. In terms of providing food is different from the general tea restaurant. For example the "Features multi-layered sandwich meal." Unlike prepared sandwiches ordinary with ham, eggs and mixed vegetables, the 759 Tea Restaurant sandwiches with the fried chicken grilled and fried clam dragon fish for fillings, but also use pastry become a basket filled with fruit salad, in order to make the food appearance be beautiful.

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